RESTRICTED  WORLD TRADE  
ORGANIZATION  G/IT/M/37 
24 March 2005 
 (05-1256) 
Committee of Participants on the Expansion of 
Trade in Information Technology Products  
 
 
 
MINUTES OF THE MEETING OF 5 NOVEMBER 2003 
Chairman: Mr. H. Yoshikawa (Japan)  
Agenda of the Meeting            P a g e  
 1.
 Review of the Status of Implementation of the Ministerial Declaration on Trade in Information Technology Pro ducts (G/IT/1/Rev.29)...........................................................1
 
2. Non-tariff Measures Work Program me (G/IT/SPEC/Q4/19/Rev.2 and 
G/IT/SPEC/Q2/11/Rev.1) .....................................................................................................2  
3. EMC/EMI Pilot Proj ect (G/IT/23).......................................................................................3  
4. Divergences in Classifying Info rmation Technology Products  
 (G/IT/14/Rev.1/Add.1 and G/IT/W/6/Rev.2) ......................................................................4  
5. Draft Annual Report of the Committee (2003) (G/IT/W/9) ..............................................6  
6. New Participants ............................................................................................................... ....6 
7. Other Bu siness................................................................................................................. ......8  
 
Introduction 
 
 The Chairman  stated that the proposed agenda for this meeting was circulated in 
WTO/AIR/2201 on 24 October 20 03. With reference to the agenda, he asked if there were any other 
matters to be raised under "Other Business".  He stat ed that he would take up the review of product 
coverage and the date of the next meeti ng of the Committee.  The delegate of Japan  requested to take 
up two matters under "Other Business"—to report on the dispute regarding digital cameras and to 
draw attention to the classification of certain photocopying apparatus.  The agenda was adopted
 with these additions. 
 
1. Review of the Status of Implementation of  the Ministerial Declaration on Trade in 
Information Technology Products (G/IT/1/Rev.29) 
1.1 The Chairman  stated that an overview of the implementation of the Ministerial Declaration on 
Trade in Information Technology Products was contained in G/IT/1/Rev.29. This document showed the participants and the implementation issues pertaini ng to the WTO procedures for implementation.   
 
1.2 The delegate of the United States
 stated that document G/IT/1/Rev.29 suggested that El 
Salvador was in the process of completing its domestic procedures for implementation of the ITA.  He asked for more information on what the timing of the process would be.  
1.3 The Secretariat
 provided additional information that ha d been reported over the years.  The 
documentation of El Salvador was submitted in 1997, a nd it was made subject to the approval of their 
domestic procedural requirements.  Today we have not been informed that those domestic procedural G/IT/M/37 
Page 2  
 
 requirements have been completed or implemented,  thus we are prevented from formally proceeding 
with the certification until further inform ation is received from El Salvador. 
 1.4 The delegate from the Philippines
 asked about the implication of  paragraph 4 of the document 
because it indicated that the letter of acceptance had been received from all participants except eleven. 
 
1.5 The Secretariat  responded that the Ministerial Declarati on states that a letter of acceptance 
pursuant to paragraph 10 of the Annex, was to be s ubmitted by all participants.  At the time the ITA 
came into force in 1997, all letters of acceptance ha d been received and accepted by the participants at 
that time.  Unfortunately, some countries who have joined the ITA since that time have not sent in a 
letter of acceptance. It is still very unclear, and qu estions were raised many years ago, what was the 
importance of a letter of acceptance, and what legal value did it have in respect of the Declaration.  
The questions had no clear answers but the Secretar iat and the Chairpersons throughout the years had 
been involved in reminding delegations to send in  a letter of acceptance as part of their formal 
approval process.  If they did not have a letter of ac ceptance, it was unclear what it meant in terms of 
the agreement, but clearly the tariff commitments were legally part of the WTO commitments and it 
was presumed the letter of acceptance was in addition to that, but it was up to the participants to 
determine if they wanted to enforce it or what they perceived as the importance of the letter of 
acceptance.  1.6 The delegate of Canada
 followed up on the questions raised by US, and asked if it would be 
possible for the Chairman to contact the authorities of El Salvador and Panama in order to get an 
update of their situation.  He shared the same con cerns expressed by US, as he had always seen those 
two countries identified as not having completed cer tain procedural requirements.  He thought it 
would be a good idea for the Chairman to get mo re updated information, which could then be 
communicated to the Committee. 
 
1.7 The Chairman  reported that from the information he ha d regarding El Salvador, they had been 
active recently and had been in contact with the Secr etariat.  He believed it would not take long before 
they submitted the formal schedule for approval.  As  for Panama, there was no additional information, 
although the previous Chairman had taken up this matter last year. He stated he would contact 
Panama and report back to the Committee. 
 
1.8 The Committee took note  of the statements made. 
 
2. Non-tariff Measures Work Program me (G/IT/SPEC/Q4/19/Rev.2 and 
G/IT/SPEC/Q2/11/Rev.1) 
2.1 The Chairman  recalled that the Committee had continue d with its work as concerned the NTM 
Work Programme.  The Committee had before it the updated paper on the overview of responses to the EMC/EMI Survey, as contained in document G/IT/SPEC/Q4/19/Rev.2, and the overview of proposals to the NTM Work Programme, in document G/IT/SPEC/Q2/11/Rev.1.  While these two documents provided a good basis to continue work on these two subjects, there had been no concrete 
steps taken for future work on this subject.  He noted the good discussions last time and that some 
participants wanted time to think and refl ect on how to move forward on this issue. 
 2.2 The delegate of the United States
 suggested it might be useful to have an informal discussion 
at some point in the future to explore what might be done with the NTM portion of the agenda.  At this stage, her government did not have any though ts itself. Obviously, this may relate to how the 
negotiations proceed but it is also integral to th is Committee's work, and she suggested an informal 
brainstorming session in the future.  She noted the st udy conducted a while ago on a range of barriers, 
and the work on EMC/EMI,  but the question remain ed what should this group do and what would be 
useful to undertake with respect to NTMs.  G/IT/M/37 
 Page 3 
 
 
  
2.3 The delegate of Australia  stated his delegation did not have a formal proposal, although 
during the July meeting of this Committee, sever al Members made the point that the Committee's 
work on NTMs could complement and contribute to the work on NTBs undertaken in the NAMA 
negotiations.  He wanted to explore the idea, and suggested, that the Committee could consider if to 
report, at some stage, to the NGMA on the wo rk it had undertaken in the area of NTMs. 
 2.4 The delegate of the European Communities
 shared the views of the previous speakers on the 
matter and thought it would be a good idea to have an informal meeting to brainstorm on how to 
continue with the, NTM Work Programme.  He also  supported exploring the links that may exist with 
other bodies, especially in the framework of the DDA , so the NGMA was relevant.  He supported the 
idea of an informal brainstorming meeting.  2.5 The delegate of the Philippines
 noted the large amount of time and energy spent on the NTM 
Work Programme.  Her capital was able to reply to the questionnaire, so the follow-up question was, 
now that they had replied, what were the next step s.  She did not want to waste any of the valuable 
information that the Committee had before it.  She agreed to the US suggestion that it would be a 
good idea to have an informal meeting to brains torm.  Referring to the Australian proposal, and 
thought that there might be a problem, because not all WTO Members were ITA participants.  2.6 The delegate of the United States
 responded to the Philippines and stated that from her 
perspective, as long as it was clear that information provided to other bodies was from a group of 
Members that were participants to this agreement, she did not see it as a problem. She noted that Australia had proposed a suggestion for considerati on in the future, so she thought the group could 
reflect on this, and noted a number of other areas where information had been provided to the NAMA 
group that was not relevant to all Members, for example the work concerning APEC.  She cautioned 
that it might not be conduci ve to limit information that this Co mmittee thought relevant to the work of 
other groups simply because not all Members were participants.  She noted it might be better to 
discuss this in an informal setting, but she wanted to offer an alternative perspective on that point. 
 2.7 The delegate of Australia
 supported the US statement with r espect to the membership issue.  
On a follow up motion, he recalled at the July meeting when discussing the EMC/EMI pilot project, 
Canada had suggested it was considering a paper on 'best practices' for EMC/EMI regulatory issues 
and wondered if Canada woul d develop such a paper. 
 2.8 The delegate of Canada
 stated he would take up this matter under the next agenda item. 
 
2.9 The delegate of the Philippines  responded positively to the US, and indicated it would not be 
a problem with her delegation, but was thinking others.  She thought other Members were quite 
satisfied with what was being done here, and agreed to the suggestion that this could be part of the 
informal brainstorming meeting to see how to proceed.  2.10 The Chairman
 suggested having an informal brainstorming session in the future and the 
proposal made by Australia would be taken up.  The Committee so agreed  and took note  of the 
statements made.  
3. EMC/EMI Pilot Project (G/IT/23) 
3.1 The Chairman
 recalled that there was a EMC/EMI Workshop held earlier this year and a 
Chairman’s Summary statement was issued in order for participants to refer to it and perhaps take 
further steps on this matter as part of the Pilot Project.  He noted that at the last meeting, good discussions were held on the outcome of the Wo rkshop and many expressed appreciation for it.  G/IT/M/37 
Page 4  
 
 However, there were some delegations who expressed in terest in possible next steps to be taken with 
respect to this matter.    3.2 The delegate of Canada
 recalled the last meeting in July, he thought that the Workshop held 
earlier this year was extremely useful and did not  want to lose the useful work that had been 
accomplished.  Thus, he saw Chairman's summary st atement as a very useful reference point for the 
continuation of work in this area. As a more c oncrete contribution to that work, his delegation 
indicated earlier that they were interested in de veloping a national experience paper.  His regulatory 
authorities were still committed to producing such a pape r.  Due to intense regulatory activity in other 
fora, they had not produced it earlier but they were cu rrently developing such a paper.  In this regard, 
he hoped to come forward with a communicati on which would further help the discussions.  
 3.3 The delegate of the United States
 remained very interested in this project and hoped to 
integrate their experience with that of Canada .  Her authorities had attended many of the same 
meetings as Canada, and therefore he did not have an  answer to what could be produced and in what 
timeframe, but they were actively working on it.   She was optimistic about the outcome of the 
Workshop and sensed there were quite a number of  developing country regulators who found the 
session useful.  So to follow up, it was important to do further thinking and talk with their regulators.  
Her delegation would continue to tr y to work towards producing a document with Canada, or at least 
having a parallel process.  
3.4 The delegate of Japan
 welcomed the Canadian and US initiatives. He understood the papers 
would be a useful tool to proceed with the NTM Work Programme.  3.5 The Committee took note
 of the statements made. 
 4. Divergences in Classifying Information T echnology Products (G/IT/14/Rev.1/Add.1 and 
G/IT/W/6/Rev.2) 
4.1 The Chairman
 recalled from the previous meeting that  discussions had commenced on the report 
of the customs experts, which reflected the outcome of their latest work from last year.  The report, which had been circulated in document G/IT/14/Rev.1/Add. 1, gave an overview of the classification issues 
discussed by the experts.  In addition, the Secret ariat had updated its overvi ew document, listing the 
outcome by various categories.  This has been provided in document G/IT/W/6/Rev.2.  While the 
examination of the report commenced last time, no decision had been taken on how to proceed.  Thus, at 
this point in the work, he suggested taking small steps to addr ess the issues in this report.  For example, 
there was one item that had been suggested for referral to the WCO.  He asked if the Committee would agree to send this item to the WCO as it could take some time for that organization to reply.   
 
4.2 The delegate of the European Communities
 noted that the customs experts had studied the 
existing classification divergences, and they had made  very good progress.  He was grateful to the 
Secretariat for putting together the results of tho se long discussions in the document just referred to.  
This gave very clear guidance and a good picture of where things stood where the customs experts had already achieved some understanding and where mo re discussions were needed.  He asked the 
other ITA participants about how they would like to proceed with this work.  He noted the Chairman 
made a proposal with regard to one part of the doc ument, List III -  items to be sent to the WCO for 
advice, and the EC agreed to this proposal.  He  asked the Committee to take up the other issues-- 
those where convergences were found, and those wh ere convergence needed a bit more work.  He 
suggested discussing possible next steps at the info rmal brainstorming session that was to be held. 
 
4.3 The delegate of the Philippines
 expressed appreciation for the document that summarised the 
situation.  As a member that had participated in th e customs expert's meeting, it was important that the 
Committee continue with this work.  Referring to List  I (A) in the document, she stated that there was  G/IT/M/37 
 Page 5 
 
 
 already an agreement among customs experts for one classification option.  She asked if this 
Committee could favourably endorse those classif ications.  While she was aware that some 
participants were not able to send their experts, she recalled that each delega tion would need to check 
with their respective authorities to see if the classification agreed by the experts was acceptable.  It 
was important not to disregard the energy, resour ces, and time spent on these matters.  She proposed 
that everyone examine the classifications in List I (A ) and provide a response at the next meeting.  If 
there was something her delegation could not accept, then she would give an explanation. The same 
would be true for the List I (B) items.  As for List  III,  she recalled the sugg estion to refer the item to 
the WCO, which was agreeable.  She thought it was prudent to make such a referral and wait for the 
WCO to come back with a reply.  She urged the Co mmittee to take up these matters, especially List I 
(A), but if it was difficult for others, it could also be taken up at the informal brainstorming meeting. 
 4.4 The delegate of Japan
 shared the same views as the Eur opean Communities.  He appreciated 
the efforts made by the Secretariat to update the cl assification lists as a result of the expert meeting 
which took place in May last year. Japan hoped the discussions on classification would make further 
progress. 
 4.5 The delegate of Canada 
shared many of the points made by European Communities and the 
Philippines which aimed at finding a pragmatic solu tion on how to make progress in this area.  He 
saw three groups of issues as concerned classificati on divergences.  First, there were the issues where 
the customs experts reached a consen sus, and that was with respect to Lists I (A) and I (B).  The 
second category concerned Lists II, IV and V, where there was no agreement, but discussions needed 
to continue to resolve the classification divergences.  The third category concerned the item in List III, 
where advice of the WCO Harmonized System Committee(HSC) was sought.  With respect to List I (A), the suggestion of the Philippines seemed to be a reasonable way to proceed.  He suggested that 
the participants consult with their customs expert s to see if the one classification option for the items 
in List I (A) was acceptable.  With respect to Li st I (B), he thought a similar approach could be 
adopted to encourage customs authorities to focus their attention and provide feedback, and in the 
future have a discussion in formal, or informal mode  in the future.  With re spect to a List III, he 
agreed with the proposal and thought the sooner it could be referred to the HSC of the WCO, the 
better.  For the last category, which was Lists II, IV  and V; he thought it best to reflect further and 
agreed with the EC that a brainstorming session coul d provide a useful opportunity to advance these 
discussions. 
 4.6 The delegate of the United States
 shared many of the views already stated.  It was important to 
follow up on these initiatives and not lose the very good work.  She supported the views with regard 
to List I (A), that each participant should be committ ed to going back to their authorities with the view 
to having a position for the next meeting.  She al so supported the Canadian suggestion to encourage 
the customs authorities to help on List I (B) ite ms.  She thought for the remaining items, it was 
important to give serious thought on how to addr ess them and perhaps that could be something to 
include in the informal discussions.  With respect  to sending a letter to the WCO concerning the item 
on List III, she did not have a problem with it, but su ggested that the relevant materials or information 
on the products concerned also be forwarded to the WCO to aid them in this work.  She encouraged 
the Committee to proceed with  the work on divergences. 
 4.7 The delegate of Chinese Taipei
 appreciated the work that had taken place on classification 
divergences.  He stated that his customs experts had started to review the document compiled by the 
Secretariat and in this regard, supported the sugges tion made by other delega tions that the Committee 
take up List I (A) items at the next meeting. 
 4.8 The delegate of Korea
 stated their appreciation for the s uggestion to go back and check with 
customs officials in order to obtain the formal endor sement of the classification options.  However, he 
was not sure of the legal effect that kind of d ecision or endorsement by this Committee would have. G/IT/M/37 
Page 6  
 
  
4.9 The Secretariat
 responded to Korea.  She thought the next step the Committee would take 
would be to endorse the classifications in List I (A) and possibly also List I (B).  At some future point in time, the Committee would have to agree on the procedures for making those changes, perhaps by 
amending the schedules of concessions for ITA products.  There were clearly participants that did not 
have all the classifications currently listed in List  I (A) and presumably they would have to make 
changes to their schedules at some future point in  time.  But this was a matter for the Committee to 
discuss.  4.10 The Chairman
 made proposals with respect to three i ssues — 1) that the item on List III  be 
sent to the WCO for their classification opinion, 2) the items on Lists I (A) and I (B) will be discussed 
at the next meeting for endorsement by the Committee, and 3) for the other Lists, these would be the subject of a brainstorming session, to be held in the future, in order to find a possible way forward.   
 4.11 It was so agreed
. 
 
5. Draft Annual Report of the Committee (2003) (G/IT/W/9) 
5.1 The Chairman  recalled that the Committee reported annually to the Council for Trade in 
Goods.  The draft report for this year had been ci rculated in document G/IT/W/9.  The report was a 
factual summary of the work undertaken in the Committee during the year.  Furthermore, it would 
likely need to be updated in light of the discussions in the Committee today.   
5.2 The delegate of the Philippines  asked whether the issues discussed on classification  
divergences would be reflected in para graph 5 of the draft annual report. 
 5.3 The Chairman
 responded that the outcome of today's m eeting would be included in the annual 
report.   
 
5.4 The draft annual report was approved  with the incorporation of the outcome of the 
Committee's meeting today.  
6. New Participants 
6.1 The Chairman
 stated that there had been new one schedule submitted to the Committee for 
consideration at this meeting--that of the Morocco .  As the schedule of Morocco  was circulated to all 
participants only very recently, he felt that participants needed more time to examine the draft schedule before it was formally put forward for approval.  So, in order to proceed on a practical and pragmatic 
basis, he proposed that participants examine the schedule until 14 November, and if there were no comments received by the Secretariat by the close of business on that day, the schedule of Morocco 
would be deemed to be formally approved.     
 6.2 The delegate of Morocco
 stated that his delegation had followed with great interest the work 
of this Committee and the results since the Minister ial Conference held in Singapore in 1996 when 29 
countries or customs territories adopted the Ministeria l Declaration.  Since that time, many countries 
had notified their acceptance of this agreement and b ecame participants to the ITA and it was in this 
context that Morocco recently made the request to accede.  In this regard, his country had taken into 
consideration the three principles which all participants  respect, that is 1) all the products set out in 
the Declaration must be covered; 2) for all these products, the import duties are at zero; and 3) all  duties are bound at zero.  For Morocco, the value of imports of the products covered by the ITA has  increased from 2 to 11 hundred thousand dirham betw een 1997 to 2000, and in 2001 it reached 14 11 
hundred thousand dirham billion.  In 2000-2001, the percentage of imports from the EC, compared to 
overall imports, represented 89 percent and 84 per cent respectively, whereas in 1997 it was 66  G/IT/M/37 
 Page 7 
 
 
 percent.  This increase in imports of ITA products was due to an effort undertaken to reduce customs 
duties; at present most IT products had a 2.5% customs duty and furthermore, the elimination of applied duties on products from the EC came into e ffect in 2000.  The national services had carried 
out a significant amount of work in order to bring Morocco into conformity with the technical aspects 
of the agreement.  This work had included identif ication of products relate d to ITA products in the 
national tariff.   
 6.3 He believed Morocco had a lot to gain fro m accession to the ITA.  The elimination of 
customs duties on ITA products would have a be neficial result and allow competition in the 
international market for ITA products and give be tter access to the national market for ITA products 
which would further contribute to a greater utilisation of information technologi es, particularly in the 
production sector and promote the expans ion of IT trade.  It would also give a clear signal to foreign 
investors, as regarded new information technology .  He noted that all types of implementation 
required a certain amount of time, and Morocco wa s requesting an implementation period that would 
not go beyond 1 April 2004 rather than 1 January  2004, as initially set out.  He welcomed any 
requests for clarification which may be received from the participants on the schedule prepared by 
Morocco, bearing in mind the date of 14 November 2003 for approval.  6.3 The delegate of the European Communities
 thanked Morocco for their statement which  
clearly demonstrated the importance of the ITA.  It was with great pleasure that his delegation 
welcomed Morocco as a future participant, and belie ved that this decision taken by Morocco would be 
seen by other developing countries as an encouraging sign.  According to the experience of the EC, he 
confirmed that this decision taken to join the IT A was a good one.  He welcomed Morocco to the ITA. 
 6.4 The delegate of Canada
 agreed with the statement made by  EC and thanked Morocco for their 
statement and their interest in the ITA.  He agreed  to many of the points made by Morocco as to the 
importance of the ITA for the liberalisation of trade, and in particular two points:  1) the elimination 
of customs duties on a sectoral basis greatly contri buted to facilitating supply of such products and 
certainly encouraged investment; and 2) the point ma de as regarded the development expansion of IT 
and its important role.  He welcomed the commitment expressed by Morocco as to the timing of liberalisation for the products in this sector.  He understood that this was the result of considerable 
reflection and believed the results  were an eloquent illustration of  Morocco's commitment to the 
sector.  He welcomed Morocco to the ITA. 
 6.5 The delegate of the United States
 was pleased to have this information before the Committee 
today and to have this well-demonstrated commitm ent by Morocco presented.  She was encouraged 
by the offer  Morocco had put forward and her authorities were very pleased to welcome Morocco 
into the ITA and wanted to continue to wo rk actively with Morocco  in the steps ahead. 
 6.6 The delegate of Japan
 appreciated the statement by Moro cco and welcomed the submission of 
the schedule by Morocco and would look at it positively.  6.7 The delegate of Egypt
 thanked Morocco for the comprehe nsive statement and hoped to see 
Morocco as a participant to this Committee very soon. 
 6.8 The delegate of Bahrain
 thanked Morocco  for the statement and assured their commitment to 
have Morocco enter the ITA.  He wanted to we lcome Morocco as the next participant and looked 
forward to having them at the next meeting. 
 
6.9 The delegate of Malaysia , on behalf of ASEAN members present, welcomed Morocco's 
participation in the ITA and noted that the inte rest shown by many countries in this sectoral 
liberalisation approach was encouraging and was glad  others saw the benefits of participating.  
 G/IT/M/37 
Page 8  
 
 6.10 The delegate of Australia
 thanked Morocco for their stat ement and welcomed Morocco's 
forthcoming participation in the agreement.  He  endorsed the comments made on the benefits of 
liberalisation in this sector.  6.11 The delegate of Chinese Taipei
 thanked Morocco for their statement and welcomed them to 
this agreement, taking into account the commitm ents made by Morocco.  His delegation would 
examine Morocco's ITA schedule and inform th e Secretariat if there were any questions. 
 6.12 The Chairman
 stated it appeared agreeable that the Committee proceed on the basis just outlined 
--that the schedule of Morocco would be deemed to  be approved unless any participant would notify its 
objection to the Secretariat before the close of business on 14 November 2003. 
 6.13 There were no comments on the ITA schedu le of Morocco by the deadline of 14 November 
2003, and Morocco's participation in the ITA was approve d.  A fax confirming this situation was sent to 
all participants on 17 November 2003.  Morocco became the 61
st participant to the ITA . 
 
7. Other Business 
7.1 The delegate of Japan  raised two matters under 'other bus iness'.  First, concerning the on-
going dispute on digital cameras which had been repo rted three times at previous meetings, he stated 
that consultations were on-going with the country concerned.  Although there was almost nothing new 
to report on the progress, he hoped to reach ag reement soon on this issue through bilateral 
discussions.  Secondly, he raised a matter concerning the classification of certain copying apparatus.  
He understood that the ITA should include all th ese products, including electrostatic photocopying 
apparatus using an indirect process, harmonized sy stem code 9009.12.  This is what the industry 
requested, and Japan wanted to draw attention to  this issue and was ready to discuss it in the 
Committee.  Furthermore, Japan had submitted a 'zero-for-zero' proposal in NAMA to further 
liberalize trade of IT products, along with another 17 industrial sectors.  This proposal included the 
photocopying apparatus noted above.  7.2 The Chairman
 stated that the issue of the review of product coverage continued to be a matter 
under consultation, and he encouraged dele gations to continue their efforts.   
 
7.3 Furthermore, he proposed that the Committee's next regular meeting at the end of February 2004, 
subject to further confirmation.    
__________